Nervousness amongst many iconic market luminaries is rising with one calling the current environment the “Wild West.” In my view a major reason for this nervousness is the massive influence of the absolute dollar amount of assets in
The bullish in the debt market is at a near unanimity. Most measures are at or near record proportions. One measure of risk relative to the compensation investors receive to hold longer dated obligations is at a
As noted many times the markets are suggesting the overnight rate will be lowered 0.75% by year end, a very aggressive 33% reduction. Some were expecting a 0.50% drop at the July meeting only to have their hopes dashed yesterday when one of the most
Yesterday a veteran market professional commented “experience and common sense seem to be useless commodities in the world today.”
I cannot agree more with this statement especially regarding the amount of negative interest rate debt outstanding…$12.5 trillion. The amount of negative real interest rate debt outstanding is over
Natixis SA, the large French bank, plunged almost 14% yesterday after MorningStar cited concerns about the “liquidity and appropriateness” of some corporate bond holdings in a fund owned by the Bank.
Natixis’s woes added to the rising liquidity fears following the
Will there be a change in monetary policy announced today at the conclusion of the FOMC meeting? At the end of May’s meeting the Committee lowered the interest rate the Fed pays on excess bank reserves for the yield was